Sec­ond-quar­ter data should prove the coun­try’s econ­omy is on right track

China Daily (Hong Kong) - - BUSINESS -

BEI­JING — China is on course to reach eco­nomic goals ahead of the re­lease of sec­ond-quar­ter data next week, an­a­lysts have pre­dicted.

The Na­tional Bureau of Sta­tis­tics will hold a news con­fer­ence on eco­nomic per­for­mance on Mon­day and re­lease a se­ries of vi­tal sec­ond-quar­ter num­bers as well as June fig­ures.

These will in­clude gross do­mes­tic prod­uct, or GDP, data, fixed as­set in­vest­ment, in­dus­trial pro­duc­tion and re­tail sales.

“China’s econ­omy is see­ing an in­creas­ing num­ber of fa­vor­able con­di­tions,” said Li Wei, head of the De­vel­op­ment Re­search Cen­ter of the State Coun­cil.

The mar­ket con­sen­sus for sec­ond-quar­ter eco­nomic growth is 6.8 per­cent, slightly lower than the pre­vi­ous quar­ter fig­ure of 6.9 per­cent.

This came on the back of ro­bust fac­tory ac­tiv­ity, strong con­sump­tion and re­bound­ing ex­ports.

The slight down­ward trend comes from gov­ern­ment ef­forts to re­bal­ance the econ­omy in pur­suit of bet­ter qual­ity and ef­fi­ciency, in­clud­ing de­stock­ing, delever­ag­ing and prop­erty curbs, ac­cord­ing to Ren Zeping, chief econ­o­mist at Founder Se­cu­ri­ties.

Ren has fore­cast GDP growth to be 6.8 per­cent in the sec­ond quar­ter, 6.7 per­cent in Q3 and 6.6 per­cent in Q4.

Al­though the tra­jec­tory is mixed, it still shows the re­silience of the econ­omy.

If the pro­jec­tion is re­al­ized,

to­tal profit of cen­trally ad­min­is­tered State-owned en­ter­prises in the first half of 2017

an­nual growth will be well above the gov­ern­ment tar­get of 6.5 per­cent.

“Gen­eral eco­nomic sta­bi­liza­tion does not mean that eco­nomic growth al­ways holds at a spe­cific level, but it may have mild fluc­tu­a­tions at a rel­a­tively sta­ble level,” Li said.

The econ­omy is cer­tainly show­ing signs of sta­bi­liz­ing.

On Tues­day, the coun­try’s State as­set su­per­vis­ing au­thor­ity an­nounced strong profit growth for cen­trally ad­min­is­tered State-owned en­ter­prises in the first half of the year. Com­bined prof­its were up 15.8 per­cent to 722 bil­lion yuan ($106 bil­lion).

The strong per­for­mance was at­trib­uted to im­prove­ment in the Chi­nese econ­omy, progress in sup­ply-side struc­tural re­form and gov­ern­ment ef­forts to en­hance their com­pet­i­tive­ness.

The con­sumer price in­dex, a main gauge of in­fla­tion, in­creased 1.4 per­cent in the first half, much lower than the gov­ern­ment tar­get of around 3 per­cent.

The pro­ducer price in­dex, an im­por­tant in­di­ca­tor of pro­duc­tion ac­tiv­i­ties, rose 6.6 per­cent in the first half,

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